EU Clears Cargill Buy of Cerestar

Published 12:14 pm, Monday, April 25, 2016

European Union regulators granted antitrust clearance Monday to agriculture group Cargill Inc.'s takeover of French starch producer Cerestar, but referred parts of the deal to British authorities for further scrutiny.

The European Commission said it granted request by British regulators to examine the impact of the $419 million deal on the sweetener market in Britain. In Britain, the combined group would control about half the market for glucose syrup, a key ingredient of jams and soft drinks.

The British government has four months to conduct its own investigation.

EU regulations allow for such referrals if a merger threatens to create or strengthen a dominant position within a single country.

In the wider European market, the EU said the company would continue to face effective competition in the starch and wheat gluten markets from rivals such as Roquette of France, Britain's Tate and Lyle and Agrana of Italy.

In the sweeteners market, regulators found concerns only in the British market.

Cerestar is Europe's leading producer of starch and starch derivatives. Minneapolis-based Cargill is a food giant employing 90,000 people in 57 countries.

Cargill announced Oct. 30 its plan to acquire the 56 percent of Cerestar stock held by Montedison SpA of Italy.